72 So. 3d 162
Fla. Dist. Ct. App.2011Background
- Carrollwood Care challenged trial court’s denial of arbitration; case involves Gordon stays for short-term rehab.
- Gordon signed admissions paperwork on Nov 1, 2007 that included an arbitration agreement.
- Estate sued Carrollwood Care for negligence and violations of Florida Statutes §400; prior arbitration defense raised.
- Estate claimed Gordon lacked mental capacity to contract; alternatively argued arbitration unconscionable.
- Initial hearing denied evidentiary capacity hearing; trial court denied arbitration on capacity grounds.
- Appellate court remanded for evidentiary hearing; on remand trial court found capacity but held unconscionable.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether arbitration is unconscionable. | Estate: unconscionable due to capacity and terms. | Carrollwood Care: not unconscionable; severability possible. | Arbitration not unconscionable; remanded for arbitration. |
| Do remedial limitations affect enforceability of arbitration? | Estate: caps and discovery limits render it unconscionable. | Behan inapplicable; Florida law allows punitive damages where authorized. | Remedies limitations do not render it unconscionable. |
| Is severability proper to preserve arbitration if some provisions are invalid? | N/A or unfavorable to enforceability if severance not allowed. | Severability preserves arbitration if offending terms severable. | Severability permits enforcement of the rest of the agreement. |
| Did the trial court exceed the remand mandate by addressing unconscionability? | Court properly considered unconscionability since raised below. | Mandate limited to capacity issue; unconscionability not decided previously. | Court properly considered unconscionability on remand; not error. |
| Should capacity determine denial or grant of arbitration here? | Gordon lacked capacity; arbitration invalid. | Capacity resolved in favor of arbitration; unconscionability separate. | Capacity issue resolved in favor of arbitration; reversible error to deny arbitration. |
Key Cases Cited
- Woebse v. Health Care & Retirement Corp. of America, 977 So.2d 630 (Fla. 2d DCA 2008) (arbitration issues reviewed de novo; capacity and unconscionability topics)
- Alterra Healthcare Corp. v. Bryant, 937 So.2d 263 (Fla. 4th DCA 2006) (severability and enforceability of arbitration clauses after invalid provisions)
- Alterra Healthcare Corp. v. Estate of Linton ex rel. Graham, 953 So.2d 574 (Fla. 1st DCA 2007) (severability and arbitration enforceability principles)
- Jaylene, Inc. v. Steuer ex rel. Paradise, 22 So.3d 711 (Fla. 2d DCA 2009) (arbitrator decides remedial limitations' enforceability in first instance)
- Bland ex rel. Coker v. Health Care & Ret. Corp. of Am., 927 So.2d 252 (Fla. 2d DCA 2006) (unconscionability framework and separation of procedural/substantive analysis)
- Behan, Complete Interiors, Inc. v. Behan, 558 So.2d 48 (Fla. 5th DCA 1990) (Behan discussed punitive damages and arbitration limitations)
- Romano ex rel. Romano v. Manor Care, Inc., 861 So.2d 59 (Fla. 4th DCA 2003) (punitive damages arbitration considerations)
- Lacey v. Healthcare & Ret. Corp. of Am., 918 So.2d 333 (Fla. 4th DCA 2005) (public policy and severability in arbitration provisions)
- Healthcare Evaluation Servs. Corp. v. O’Donnell, 817 So.2d 1098 (Fla. 2d DCA 2002) (severability and enforceability of arbitration terms)
- Two M Dev. Corp. v. Mikos, 578 So.2d 829 (Fla. 2d DCA 1991) (remand and issue scope on retrial)
- White Sands, Inc. v. Sea Club V. Condo. Ass’n, 591 So.2d 286 (Fla. 2d DCA 1991) (mandate scope and trial court authority on remand)